Discretionary traders are in control of the strategy of each and every trade from deciding on the entry level to deciding on the exit point.
Every newbie trader has to make a choice of whether to become a system trader (the trader uses a trading system as opposed to making his own decisions) or a discretionary trader (the trader makes his own decisions). Nevertheless, both system and discretionary trading have profit potential. However, the decision of whether to become a discretionary trader or system trader should be made on the basis of individuality. There are traders who will recognize immediately the type of forex trading that is suitable for them while others have to experience both types of trading in order to understand what is suitable for them.
Trading as a business- the discretionary trader
As said earlier, the discretionary trading system has a similar goal of making money. Thus, it is aimed at making a trade that is profitable. If you are a person who wants to be in control of every trading decision, then discretionary trading is your perfect choice. This is because it gives traders control of every aspect of trading management, including entry and exit points. The discretionary trader always feels uncomfortable about giving away total control of their trading strategy to a trading system. In many cases, discretionary traders will have artistic backgrounds in fields such as gardening or writing rather than finance. However, discretionary trading is also preferred by traders who have a controlling personality. These are the traders who want always to take control of every aspect of their lives.
However, some traders are able to combine both discretionary trading and system trading at the same time. There is no problem in being a discretionary trader who also engages in some system trading. On the other hand it is unlikely that a system trader will also participate in some discretionary trading. Discretionary traders are able to track trading systems for their daily entry trades. This enables them to make every trade identified by their system. As such, they are able to manage the trade and then exit the trade using their discretion. A system trader does not have such an choice because he cannot interrupt a trade but has to follow a trade to the end.
Being a good discretionary trader requires calmness and discipline. This is because discretionary traders rely on their observation of the market in real time and their instincts to make their decisions.
To become a good discretionary trader, you have to interpret the latest news, trust your feelings, and intuition. Discretionary traders make buying and selling decisions on the basis of technical and fundamental analysis.
A discretionary trader loves being in the center of the action. If a discretionary trader loses, he believes that this is part of the game. Discretionary trading is the natural beginning of successful trading. This is because it gives a trader the excitement of being part of the trading world. The discretionary trader at the very least enjoys the competition of making profits that are bigger than those of his colleagues.
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